State, cities in next round of redevelopment fight

|
News,Business

SACRAMENTO, Calif. (AP) — A second round of fighting has begun over the dismantling of California's community redevelopment agencies.

Nearly 70 lawsuits filed by local governments, developers and affordable housing advocates remain active. A hearing in one of the most far-reaching lawsuits was held Friday with no decision from the bench.

That lawsuit, led by the League of California Cities, focuses on whether the state finance department can withhold tax revenue from cities if the parties disagree over the amount of redevelopment money owed to the state.

Gov. Jerry Brown led the push in 2011 to dismantle redevelopment agencies to relieve pressure on the state's general fund. Since then, the state has had a hard time redirecting tax revenue to local entities because cities say the money is already committed to various projects.

View article comments Leave a comment